SERITAGE GROWTH PROPERTIES

(SRG)
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Delayed Nyse  -  04:00 2022-08-17 pm EDT
13.43 USD   -1.83%
08/15SERITAGE GROWTH PROPERTIES : Entry into a Material Definitive Agreement, Financial Statements and Exhibits (form 8-K)
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08/10SERITAGE GROWTH PROPERTIES : Q2 Earnings Snapshot
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08/10Seritage Growth Properties Posts Wider Q2 Loss, Revenue Rises
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An interesting opportunity in the real estate sector

08/02/2022 | 04:55am EDT

For those who like this type of stocks, here is a special situation coupled with an interesting arbitrage opportunity in the US.

Real estate company Seritage, created in the summer of 2015 to redevelop part of Sears Holdings' real estate holdings, has announced the carve-up sale of its asset portfolio in advance of its dissolution.

These transactions follow several events: a change in operational management with the appointment of Andrea Olshan and the resignation from the board of major shareholder Eddie Lampert - who owns 29% of the capital. There was also a renegotiation of the terms of the debt with Berkshire Hathaway, the company's main creditor, and a change of status with a conversation from REIT to C-Corp.

In short, once the asset sales are completed and the company is dissolved, Seritage will announce a distribution to shareholders of between $18 and $29 per share, as indicated in the preliminary proxy. This is for a stock that currently trades at $11.

There are no impediments to the deal: the reference shareholder supports it, and is expected to buy some of the assets. The other minority shareholders, probably disappointed with Seritage's underperformance over the past five years, can finally turn the page. Berkshire Hathaway is assured of recovering its loan after pocketing generous coupons: the piecemeal sale of the portfolio of assets avoids a possible financing risk, and there are no legal or juridical obstacles.

No timeframe was given, but it is reasonable to assume that the deal will be completed by the end of the year.


© MarketScreener.com 2022
Stocks mentioned in the article
ChangeLast1st jan.
BERKSHIRE HATHAWAY INC. -0.87% 457277.5 Delayed Quote.1.47%
SERITAGE GROWTH PROPERTIES -1.83% 13.43 Delayed Quote.1.21%
All news about SERITAGE GROWTH PROPERTIES
08/15SERITAGE GROWTH PROPERTIES : Entry into a Material Definitive Agreement, Financial Stateme..
AQ
08/10SERITAGE GROWTH PROPERTIES : Q2 Earnings Snapshot
AQ
08/10Seritage Growth Properties Posts Wider Q2 Loss, Revenue Rises
MT
08/09SERITAGE GROWTH PROPERTIES : Quarterly Report for Quarter Ending JUNE 30, 2022 (Form 10-Q)
PU
08/09SERITAGE GROWTH PROPERTIES : Reports Second Quarter 2022 Operating Results - Form 8-K
PU
08/09Earnings Flash (SRG) SERITAGE GROWTH PROPERTIES Posts Q2 Revenue $29.7M
MT
08/09Seritage Growth Properties Reports Second Quarter 2022 Operating Results
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08/09SERITAGE GROWTH PROPERTIES : Results of Operations and Financial Condition, Regulation FD ..
AQ
08/09SERITAGE GROWTH PROPERTIES Management's Discussion and Analysis of Financial Condition..
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08/09Seritage Growth Properties Announces Impairment of Real Estate Assets for the Second Qu..
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Financials (USD)
Sales 2021 107 M - -
Net income 2021 -28,1 M - -
Net Debt 2021 1 363 M - -
P/E ratio 2021 -17,0x
Yield 2021 -
Capitalization 753 M 753 M -
EV / Sales 2020 18,4x
EV / Sales 2021 18,1x
Nbr of Employees 40
Free-Float 64,5%
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Managers and Directors
Andrea L. Olshan President, Chief Executive Officer & Trustee
John Andrew Garilli Chief Financial Officer
Adam Spencer Metz Chairman
Eric Dinenberg Chief Operating Officer
Andrew Galvin Chief Investment Officer